Courts can interfere with orders that are bad in law, especially in cases of violation of natural justice and ex-parte orders.

JUDGMENT :

1. Heard learned counsel for the parties.

a) For issuance of writ in the nature of certiorari for quashing of the ex-parte order dated 09-01-2021 and summary of order in Form GST DRC-01 dated 09-01-2021 issued under section 73(9) of the Bihar Goods and Services Tax Act, 2017 (hereinafter referred to as the BGST Act) and U/r 142(5) of Bihar Goods and Services Tax Rules, 2017 (hereinafter referred to as the BGST Rules)

b) For holding and a declaration that the impugned order dated 09-01-2021 passed by the respondent Number 3 is highly cryptic, misconceived non-speaking and violative of principles of natural Justice;

c) For further restringing the respondent number 3 from taking any coercive action against the petitioner for recovery of the amount of tax, interest and penalty in terms of the impugned order dated 09-01-2021 during the pendency of the present writ application;

d) For grant of any other relief or reliefs to which the petitioner is found enttled in the facts and circumstances of this case.

2. Petitioner has prayed for the following relief(s):-Petitioner has prayed for quashing of the order dated 09.01.2021 passed by Respondent No. 3, namely, the Assistant Commissioner of State Tax, North Circle, Patna in Reference No. ZD1001210075277 (Annexure-1/A) as also Summary of the order in Form GST DRC-07 dated 09.01.2021.

3. The order is ex parte in nature.

4. Learned counsel for the Revenue, states that he has no objection if the matter is remanded to the Assessing Authority for deciding the case afresh. Also, the case shall be decided on merits. Also, during pendency of the case, no coercive steps shall be taken against the petitioner.

5. Statement accepted and taken on record.

6. However, having heard learned counsel for the parties as also perused the record made available, we are of the considered view that this Court, notwithstanding the statutory remedy, is not precluded from interfering where, ex facie, we form an opinion that the order is bad in law. This we say so, for two reasons-(a) violation of principles of natural justice, i.e. Fair opportunity of hearing. No sufficient time was afforded to the petitioner to represent his case; (b) order passed ex parte in nature, does not assign any reasons sufficient even decipherable from the record, as to how the officer could determine the amount due and payable by the assessee. The order, ex parte in nature, passed in violation of the principles of natural justice, entails civil consequences. We also find the authorities not to have adjudicated the matter on the attending facts and circumstances. All issues of fact and law ought to have been dealt with, even if the proceedings were to be ex parte in nature.

7. As such, we dispose of the present writ petition in the following mutually agreeable terms:

(a) We quash and set aside the impugned order dated 09.01.2021 passed by Respondent No. 3, namely, the Assistant Commissioner of State Tax, North Circle, Patna in Reference No. ZD1001210075277 (Annexure-1/A) as also Summary of the order in Form GST DRC-07 dated 09.01.202;

(b) Petitioner undertakes to deposit twenty per cent of the amount of the demand raised before the Assessing Officer. This shall be done within four weeks;

(c) This deposit shall be without prejudice to the respective rights and contentions of the parties and subject to the order passed by the Assessing Officer. However, if it is ultimately found that the petitioner’s deposit is in excess, the same shall be refunded within two months from the date of passing of the order;

(d) We also direct for de-freezing/de-attaching of the bank account(s) of the writ-petitioner, if attached in reference to the proceedings, subject matter of present petition. This shall be done immediately;

(e) Petitioner undertakes to appear before the Assessing Authority on 2nd of January, 2023 at 10:30 A.M., if possible through digital mode;

(f) The Assessing Authority shall decide the case on merits after complying with the principles of nat